Can Islamic finance save the global system?
Islamic Finance and the New Financial System describeshow the adoption of Islamic finance principles in future regulatorydecisions could help prevent future shocks in the global financialsystem. Using illustrations and examples to highlight key points inrecent history, this book discusses the causes of financial crises,why they are becoming more frequent and increasingly severe, andhow the new financial system will incorporate elements of Islamicfinance – whether deliberately or not. With an introspectivelook at the system and an examination of the misconceptions anddeficiencies in theory vs. practice, readers will learn why Islamicfinance has not been as influential as it should be on the largerglobal system. Solutions to these crises are thoroughly detailed,and the author puts forth a compelling argument about what can beexpected in the future.
Despite international intervention and global policy changes,the financial system remains in a fragile state. There is anargument to be made about integrating Islamic finance into the newsystem to facilitate stronger resilience, and this book explainsthe nuts and bolts of the idea while providing the reader with ageneral understanding of Islamic finance.
- Understand the key principles of Islamic finance
- Examine the history of the current financial system
- Discover how Islamic finance can help build a new debt-freeeconomy
- Learn how Islamic finance theory doesn't always dictatepractice
Although Islamic finance is a growing market, it is still aforeign concept to many. Those within the Islamic finance circleswonder why the system has yet to gain broader appeal despite itsability to create a strong and well-balanced economy. IslamicFinance and the New Financial System provides clever analysisand historical background to put the issues into perspective.
About the Author
TARIQ ALRIFAI has been involved in Islamic finance for more than 18 years. He is an active public speaker on Islamic finance around the world and a leading authority on Islamic funds and investment products. He has written for publications such as Euromoney Books and the Harvard University Forum on Islamic Finance, and was a contributing author of Contemporary Islamic Finance: Innovations, Applications and Best Practices, published in 2013. He is often quoted in print and electronic media, including the Financial Times, Bloomberg, Reuters, and CNBC Arabia.
Tariq was previously the Global Director of Islamic Indices at S&P Dow Jones Indices. He also served as Vice President of UIB Capital, a U.S.-based private equity firm. Prior to this, he was Vice President and Manager of HSBC Bank's Islamic Finance Program in the United States. In 1996 Tariq founded Failaka Advisors, which was the first-ever organization to monitor and publish research on Islamic funds. Tariq holds an MBA from DePaul University in Chicago and a bachelor's degree in international business from St. Cloud State University in Minnesota.
Table of Contents
About the Author ix
PART ONE Financial Crises and the Current Financial System
CHAPTER 1 A Brief History of Financial Systems and the Birth of Money 7
CHAPTER 2 Past Financial Crises and Their Causes 23
CHAPTER 3 The Global Financial Crisis of 2008 51
CHAPTER 4 Solutions Create More Problems 73
CHAPTER 5 The Next Financial Crisis and the New Financial System 87
PART TWO The Islamic Financial System
CHAPTER 6 Overview and History of Islamic Finance 97
CHAPTER 7 The Key Principles of Islamic Finance 117
CHAPTER 8 Islamic Financial Instruments as Alternatives 139
CHAPTER 9 Criticisms, Shortcomings, and Misconceptions of Islamic Finance 159
PART THREE The New Financial System
CHAPTER 10 Preventing Future Crises—Real-World Solutions from Islamic Finance 181
CHAPTER 11 Evaluating Alternative Solutions 197